Definition: The mortgage origination fee, also called the loan origination fee or the prepayment penalty, is a cost charged for some home loans in addition to the interest rate on the loan. In this scenario: - The homeowner has a fixed-rate mortgage that is typically paid off every 60 years, with the principal balance remaining unpaid during these periods - There are no payments due after the last payment date of the last 12 months; i.e., in the case of a 30-year fixed rate home loan, at the end of the first 12 months, the principal will be paid off and the interest is calculated based on the remaining balance on the original loan - The homeowner decides they want to pay off their mortgage early with the option to prepay the remaining principal balance with no penalty or interest The "mortgage origination fee" is typically charged in order to cover the cost of the loan itself, and for certain types of home loans it may be required by law. The amount charged can vary from state-to-state, but generally speaking, this fee is calculated on a monthly basis based on the remaining balance on the original loan. The exact definition of "mortgage origination fee" will depend on the terms of the loan agreement and the specific lender or bank in question. It's important to contact the lender directly for details about what type of fee you're charged, as it can vary significantly from state-to-state.

mortgage origination fee